Duffy to pocket $12.5m cash and remain DNZ CEO
DNZ Property Fund has announced it will be paying $35 million to buy its recently retired director Alistair Hassell and current chief executive Paul Duffy out of their management contract.
The decision was reached after consultation with its board voting unanimously to the $35 million figure.
This is down from the originally proposed $42 million that had shareholders outraged in November.
Mr Duffy and Mr Hassell will pocket $12.5 million each in cash from the new deal, with $10 million to be reinvested in the company. Mr Duffy will remain CEO.
Chairman Tim Storey admitted it was a large amount of money.
“It’s still a significant sum but it is at a level that will ensure real benefits to shareholders. We have also discussed this with MMG Advisory Partners and members of the Money Managers Action Group,” Mr Storey said.
“Both groups agree we have to move the company forward to begin restoring value. On that basis they accept the management contract has to be bought out and the management function internalised and they have indicated their support for the terms the independent directors have negotiated.”
With the management contract now internalised, there will only be one class of shareholders. Mr Storey said this meant it could list sooner.
“Internalising the contract and adopting a new constitution means we will no longer have two classes of shareholder, removing a significant impediment to any listing plans,” Mr Storey said.
The company is due to soon announce the date of its annual meeting to be held in Auckland.
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Comments and questions13
i'm leaving the financial no hioper of a country.
and externalise the profit function.
This is blatant theft of shareholder money.
How management can appoint themselves as managers with a management contract, then the company buys the management contract back off them, then continues with them as management just beggars belief..
They're highway robbers and theives and laughing all the way to their party with Robert Jones, opps sorry "Sir" Robert Jones who was the architect of such robbery schemes.
Put them in jail for goodness sake.
The financial jiggery pokery in this country is nothing short of a joke...and a disgrace. No surprise that we have no growth and are slowly going down the tubes and so many are bailing out. Why would you bother to invest money with any companies to merely provide a lifestyle for more and more white collar crooks.
Duffy is the biggest con artist there is. Surprised he hasnt ended up in jail yet but just like hothcin, petreivic, bryers etc, he manages to keep getting away with it.LocK HIM UP!!!
Lock him up. He's just as bad as hotchin, byers and pretevic and all those other conartists. LOCK UP DUFFY NOW.COM
Alas NZ is full of commercial hazards Poor old Mom and Pop investors have no show against the crooks supported by the legal and accounting profession and the legislators and regulators all doing their darndest to ensure Mom and Pop are separated from their money.
Ahh the so called free market.
While Duffy & Hassells destroyed unit holders value by their continued buy up of development sites to enhance the value of their management contract, lets not forget who the Architect of this management contract was. Doug Somers Edgar is the real crook here, & abit smarter than Duffy & Hassells. He sold out at the peak, with the latter two taking most of the heat; & well justified.
Somers Edgar sounded so plausible on Sunday radio, but really all he is was a wolf dressed in sheeps clothes. How do guys like these live with themselves. I hope any of the friends and family they had left have now departed to let these pricks spent the rest of there days in a lonely hell.
DNZ's structure is not new.
So tell me why after all these years after everyone kept writing them cheques to enjoy the returns are you all jumping up and down now?
Perhaps you should have bought them out earlier?
Maybe its you the investors who aren't that smart. Worth thinking about.
All you whingers remind me of the Simpsons, always looking for someone else to take responsibility for your mistakes.
You wrote your cheques - take responsibility for it. The information has always been there for you to read.
Hope duffy gets taken to court. He should be bankruped and all his family should leave him to rot in hell
I assume he will be buying shares at the true N.T.A. with the 10mill he is to reinvest in DNZ,and not at the current share price?WE certaily have been ripped off ,when the contract for 20yrs was only set up 15months ago,and then bought out.
I have said it on other websites that as Parliament can do whatever it likes, eg declare someone dead then declare them alive again they should pass a law declaring the 'A' shares in DNZ to be the same as our 'B' shares. If the people behind these financial arrangements were made aware that our elected representatives would step in the prevent what I consider to be unethical (but legal) practices then there would be an abrupt end to them as they would be unprofitable.
Unfortunately a lot of our elected representatives are not really worried about defending the ordinary person in the street once they have gained their vote. Shame on the profiteers and the politicians who let them get away with it.
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